Bears have a pop to test the 8220 support | 8185 below | 8240 8280 resistance

Technical analysis for FTSE 100 for 29th May 2024

The FTSE 100 extended declines on Tuesday, as uncertainty over interest rate cuts in the U.S. and the domestic political landscape weighed on sentiment, while markets awaited Bank of England Governor Andrew Bailey's comments later in the week.

The blue-chip FTSE 100 was down 0.8%, logging its worst day in over a month and marking its longest losing streak since August 2023. The mid-cap FTSE 250 closed 0.3% lower.

The pound was last trading at $1.278, after hitting a two-month high against the greenback.

The travel and leisure shares led losses among sectors, with a 3.3% decline, pulled down by Flutter Entertainment. The online sports betting operator fell to the bottom of the FTSE 100 with a 7.3% loss after the Illinois Senate passed a sport-betting tax hike as a part of its budget on Sunday.

Meanwhile, Minneapolis Federal Reserve Bank President Neel Kashkari said in an interview with CNBC on Tuesday that the U.S. central bank should wait for significant progress on inflation before cutting interest rates.

Market focus will now shift to comments from BoE Governor Bailey on Thursday for more insight into the timing of the central bank's interest rate cut.

FTSE 100 technical analysis for today, 29th May 2024

A poor defence of 8300 yesterday and we have now dropped all the way down to the lower daily support at 8225.  A break of this now means that a test of the 8180 level is likely, with the green daily coral support here, along with S2 for today. If we see that then I would like to see a bounce here.

Initially though we may well see a climb to start with, towards the 2h resistance at the 8270 area, which ties in with the daily pivot for today as well. Above this and then the bulls will be aiming for the 8310 level where we have the 200ema on the 30m, and just below R1 at 8320. The bulls would do well to break above this today though as in the absence of any major news again, plus the US dropping back they are on the back foot.

The end of May sentimentality which has suggested weakness is once again kicking in. June looks more positive though!

Below the 8175 level the bears will start to really motor as 8108 S3 looms into view and they will be supported by a break of both the Raff channels.

Despite the drop from the 8450 level the daily chart remains broadly bullish but the move now has broken the 25ema with all eyes now on that 8180 area. A break of that will certainly get the bears motoring.

The Dax40 and S&P500 2h charts are also now bearish as you would expect with 18710 and 5300 resistance in play on them, and the key levels to look for a reaction today.

Not too much more to say really, really just look for a rise and dip to play out today.

Good luck.

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